Newjersey Resources Corporation · NYSE:NJR

Newjersey Resources — Q3 FY2016 Earnings Presentation

25 slides from Newjersey Resources's earnings presentation, Aug 2, 2016

  1. Slide 1: Fiscal 2016 Third-Quarter Update

    SAFE, RELIABLE NATURAL GAS AT OUR CORE … AND SO MUCH MORE Fiscal 2016 Third-Quarter Update August 2, 2016

  2. Slide 2: Regarding Forward Looking Statements

    Fiscal 2016 Third Quarter Update Regarding Forward Looking Statements Certain statements contained in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the

  3. Slide 3: Disclaimer Regarding Non-GAAP Financial Measures

    Fiscal 2016 Third Quarter Update Disclaimer Regarding Non-GAAP Financial Measures This presentation includes the non-GAAP measure, Net Financial Earnings (NFE). As an indicator of the Company’s operating performance, this measure should not be considered an alternative to, or more meaningful than, G

  4. Slide 4: Fiscal Third Quarter 2016 Results

    Fiscal First Quarter 2016 Update 4Fiscal Third Quarter 2016 Update 4 Net Financial Earnings* ($MM) Three Months Ended June 30, Nine Months Ended June 30, Company 2016 2015 2016 2015 New Jersey Natural Gas $3.6 $7.2 $83.5 $84.0 NJR Midstream 2.3 2.5 6.9 7.2 Subtotal 5.9 9.7 90.4 91.2 NJR Energy Servi

  5. Slide 5: Recent Highlights

    Fiscal 2016 Third Quarter Update Recent Highlights Financial Results  Net Financial Earnings (NFE) of $.13 per share Strategic Actions NJNG  Liquefaction project operational  Base rate case in settlement discussions  The SAVEGREEN Project® extended  Ongoing infrastructure investments NJR Midstr

  6. Slide 6: Base Rate Case Update

    Fiscal 2016 Third Quarter Update Base Rate Case Update  November 2015 base rate case filing established with approval of SAFE in 2012  Parties are actively engaged in settlement talks  Suspension of schedule was granted by the Administrative Law Judge  Working toward resolution with new base rat

  7. Slide 7: Southern Reliability Link (SRL)

    Fiscal 2016 Third Quarter Update Southern Reliability Link (SRL)  30-mile pipeline to support improved system integrity and reliability in Monmouth, Ocean and Burlington Counties, the southern portion of NJNG’s service area  Construction and route approved by BPU in January 2016  March 2016 BPU o

  8. Slide 8: Long-Term Average Annual NFE Growth Strategy Remains 5 to 9 Percent

    Fiscal First Quarter 2016 Update 8Fiscal Third Quarter 2016 Update 8 Our Long-Term Average Annual NFE Growth Strategy Remains 5 to 9 Percent How will we achieve this?  Invest in infrastructure to support customer growth and system reliability and resiliency  Develop Midstream projects including Pe

  9. Slide 9: NJNG's Regulated Growth Model

    Fiscal 2016 Third Quarter Update NJNG’s Regulated Growth Model 9 • Growing service area • Healthy conversion market Customer Growth • SAVEGREEN • CIP • SAFE • NJ RISE • Off-system sales • Capacity release Energy Efficiency BGSS Incentives Utility Gross Margin Infrastructure Target 60 – 70 percent of

  10. Slide 10: NJR Midstream's Growth Model

    Fiscal 2016 Third Quarter Update NJR Midstream’s Growth Model 10 • 50 percent interest in 12 Bcf storage facility in southwest PA • PennEast Pipeline • FERC issued DEIS on July 22, 2016 • Currently anticipated in service date the last quarter of fiscal 2018 or first quarter of fiscal 2019 • Investme

  11. Slide 11: NJR Clean Energy Ventures' Growth Model

    Fiscal 2016 Third Quarter Update NJR Clean Energy Ventures’ Growth Model 11 • Three operating wind farms • Additional 39.9 MW-Ringer Hill under construction • Fiscal 2016 wind capital expenditures - $102 million • 4,576 Sunlight Advantage® customers • Fiscal 2016 residential solar capital expenditur

  12. Slide 12: NJR Energy Services' Growth Model

    Fiscal 2016 Third Quarter Update NJR Energy Services’ Growth Model 12 Pipeline Capacity (1.6 Bcf/d) NFE Storage Capacity (45 Bcf) Target 5 to 15 percent of Annual NFE Producer Services Utility Asset Management Electric Generation Supply

  13. Slide 13: Net Financial Earnings (NFE) by Business Segment

    Fiscal First Quarter 2016 Update 13Fiscal Third Quarter 2016 Update 13 Net Financial Earnings (NFE) by Business Segment

  14. Slide 14: Customer Growth Drives Higher Utility Gross Margin

    Fiscal First Quarter 2016 Update 14Fiscal Third Quarter 2016 Update 14 Customer Growth Drives Higher Utility Gross Margin

  15. Slide 15: Customer Growth Continues

    Fiscal 2016 Third Quarter Update Customer Growth Continues 15  5,289 new customers added in first nine months of FY2016 • 2,884 new construction customers • 2,405 conversions  545 heat conversions  We expect these new and conversion customers to contribute approximately $3.9 million annually to u

  16. Slide 16: NJNG Capital Investment June 30, 2016 Update

    Fiscal First Quarter 2016 Update 16Fiscal Third Quarter 2016 Update 16 NJNG Capital Investment June 30, 2016 Update CAPITAL INVESTMENT ($MM) FYTD 2016E STATUS NJNG Customer Growth $24.6 $35.2 Added 5,289 customers in first nine months; on target to add 8,150 customers in FY2016 Maintenance/Other 64.

  17. Slide 17: NJR Midstream: Steckman Ridge and PennEast Pipeline

    Fiscal First Quarter 2016 Update 17Fiscal Third Quarter 2016 Update 17 Steckman Ridge  12 Bcf natural gas storage facility in southwest Pennsylvania  50/50 joint venture with Spectra Energy Dominion Midstream Partners, LP  1.8 million units  Current annual distribution rate of $.854 PennEast Pip

  18. Slide 18: NJR Clean Energy Ventures - Solar

    Fiscal 2016 Third Quarter Update NJR Clean Energy Ventures - Solar 18 Commercial  25 projects in service; 93.5 MW The Sunlight Advantage  Nearly 4,600 customers; 40.6 MW

  19. Slide 19: NJRCEV Is Hedging SRECs to Reduce Exposure to Market Volatility

    Fiscal 2016 Third Quarter Update NJRCEV Is Hedging SRECs to Reduce Exposure to Market Volatility 168 166 147 173 197 214 0 50 100 150 200 250 FY16E FY17E FY18E Th ousa n ds of SR EC s Hedged Expected Generated Current Generation Pct. Hedged: 97% 84% 67% Average Price: $214 $230 $227 As of June 30, 2

  20. Slide 20: NJR Clean Energy Ventures - Growing Onshore Wind

    Fiscal 2016 Third Quarter Update NJR Clean Energy Ventures - Growing Onshore Wind 20 Project In Service Date PPA/Hedge Size (MW) Capital ($MM) Location Contractor Turbines Ringer Hill Year-end 2016 Majority of energy produced will be hedged under 15-year agreement with Iron Mountain 39.9 $84 Pennsyl

  21. Slide 21: NJR Energy Services

    Fiscal First Quarter 2016 Update 21Fiscal Third Quarter 2016 Update 21  Serves wholesale customers across North America  Diverse portfolio of physical natural gas assets  Firm storage (45 Bcf in the US and Canada)  Firm transportation (1.6 Bcf/day)  Services include: • Transporting natural gas

  22. Slide 22: Impact of Volatility

    Fiscal First Quarter 2016 Update 22Fiscal Third Quarter 2016 Update 22 Impact of Volatility ▪ Warmer weather has caused less volatility in fiscal 2016 than past two years Source: Platts, a division of McGraw Hill Financial, TETCO M-3

  23. Slide 23: Total Return Periods Ended June 30, 2016

    Fiscal 2016 Third Quarter Update Total Return Periods Ended June 30, 2016 44.1% 34.9% 4.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% NJR Dow Utilities S&P 500 1 Year Total Return 13.2% 9.8% 7.4% 0.0% 5.0% 10.0% 15.0% NJR Dow Utilities S&P 500 10-Year Annualized Total Return Assumes reinvested dividends 23

  24. Slide 24: Appendix

    Fiscal 2016 Third Quarter Update 24 APPENDIX

  25. Slide 25: Reconciliation to Non-GAAP Measures

    Fiscal First Quarter 2016 Update 25Fiscal Third Quarter 2016 Update 25 Reconciliation to Non-GAAP Measures A reconciliation of NFE for the three- and nine- months of fiscal 2016 and 2015 to net income is provided below: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2016 2015 201

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